Hello Curry buys Paratha Post, in talks to raise Rs50-60 crore

Hello Curry is advanced talks with two venture capital firms to raise funds as it expands into newer geographies and evaluates acquisition opportunities

Yogendra Kalavalapalli
Updated29 Apr 2015, 12:01 AM IST
Paratha Post will continue to operate as a separate brand for some time before being merged with Hello Curry. <br />
Paratha Post will continue to operate as a separate brand for some time before being merged with Hello Curry.

Hyderabad: Hello Curry, a quick service restaurant chain (QSR) specializing in Indian cuisine, is in advanced talks with two venture capital firms to raise 50-60 crore as it expands into newer geographies and evaluates acquisition opportunities.

Raju Bhupati, director of Red Sprout Foods Pvt. Ltd, the holding company of Hello Curry, declined to name the investors, but said the two had food businesses in their portfolio.

Bhupati expects to close the round over the next 2-3 months.

Sri Capital, floated by technology entrepreneur Sashi Reddi, might participate in the round, Bhupati said, although there is no confirmation from Reddi yet.

Reddi, who sold independent testing services company AppLabs Technologies Pvt. Ltd to Computer Sciences Corp. in 2011, invested 3 crore in seed round in April 2014.

The Hyderabad-based company on Tuesday acquired Paratha Post, a competing home delivery firm gaining significant traction in the local market. The final contours of the cash and stock deal are being worked out, and one of Paratha Post’s founders, Mukesh Lamba will join the senior management of Hello Curry.

Lamba will oversee Hello Curry’s expansion in the National Capital Region (NCR) and directly report to Bhupati, Hello Curry’s chief executive officer.

“For Hello Curry to become a national player, we need to look for good acquisitions. Paratha Post comes at the right spot,” Bhupati said. “The acquisition brings great synergy between both the organisations and will significantly contribute towards Hello Curry’s aggressive growth plans.”

Paratha Post will continue to operate as a separate brand for some time before being merged with Hello Curry. The product range and customer mix of the two brands have significant overlaps and Paratha Post will add 55 varieties of standardized parathas to Hello Curry’s menu.

Paratha Post was started by two Indian Institute of Management-Lucknow graduates, who opened the food delivery service specializing in parathas and curries in Hyderabad, after working for more than seven years in information technology services firms. Over the past 18 months, it sold 300,000 parathas in 60,000 delivery transactions, clocking revenue of 1 crore when the deal was sealed. The venture was profitable within three months, Lamba said.

Hello Curry plans to open three outlets in the national capital region by June. The quick service restaurant chain has five outlets in Hyderabad and will add three more in the next few months. In Bengaluru, where it opened two outlets recently, Hello Curry will add three units in three months, Bhupati said.

An outlet typically takes three months to break even, although, at a corporate level, Hello Curry is yet to turn in a profit, according to Bhupati.

The company is also in initial talks to take over a Mumbai-based food chain. The acquisition, if it materializes, will enable Hello Curry to open outlets in that city.

“We will continue to do acquisitions going forward,” Bhupathi said. “Inorganic growth is really important to really expand across markets.”

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.MoreLess
First Published:29 Apr 2015, 12:01 AM IST
HomecompaniesnewsHello Curry buys Paratha Post, in talks to raise Rs50-60 crore

Most Active Stocks

Tata Steel

172.30
03:57 PM | 8 JUL 2024
-2.45 (-1.4%)

Oil & Natural Gas Corporation

299.25
03:57 PM | 8 JUL 2024
11.05 (3.83%)

Bharat Electronics

334.15
03:48 PM | 8 JUL 2024
10.15 (3.13%)

Indian Oil Corporation

170.15
03:55 PM | 8 JUL 2024
-1 (-0.58%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Fertilizers & Chemicals Travan

1,115.80
03:51 PM | 8 JUL 2024
98.65 (9.7%)

One 97 Communications

472.05
03:51 PM | 8 JUL 2024
35.45 (8.12%)

Indian Railway Finance Corporation

202.10
03:55 PM | 8 JUL 2024
13.8 (7.33%)

IRCON International

326.90
03:55 PM | 8 JUL 2024
19.15 (6.22%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    74,093.0073.00
    Chennai
    74,819.000.00
    Delhi
    74,819.00290.00
    Kolkata
    74,674.00-145.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    102.86/L0.00
    Chennai
    100.75/L-0.17
    Kolkata
    104.95/L0.00
    New Delhi
    94.72/L0.00
    OPEN IN APP
    HomeMarketsCibilPremiumMint Shorts